Nasir Malik, known as Naz, was the chief executive of the All Wales Ethnic Minority Association (Awema) before his arrest prompted its funding to be pulled and the organisation folded.

The 65-year-old was accused of fraudulently paying two cheques into his bank account totalling about £12,000 as well as dishonestly setting up a life insurance policy, which was paid for by his employers.

Following a three week trial, a jury at Swansea Crown Court found the defendant not guilty of two charges - paying a £2,500 cheque into his account and setting up the death in service benefit.

But after almost eight hour of deliberations the eight men and four women panel told Judge Peter Heywood it could not agree a verdict on the third charge.

This related to allegations Mr Malik used £9,340 of charity funds to pay off his credit card bill.

Mr Malik’s defence was that the cheques he paid to himself were for expenses he was owed as he was entitled to a life insurance policy after taking a pay cut.

A suited Mr Malik made no comment to reporters as he left the court.

Carrie Evans, head of the Crown Prosecution Service Wales Complex Casework Unit, said: "We are satisfied that this case was brought before the court in accordance with the evidential and public interest guidelines laid out in the Code for Crown Prosecutors. We fully respect the verdicts reached by the jury.

“With regard to the charge on which the jury were unable to reach a verdict, we will now take time to review the prosecution position before deciding whether or not to seek a retrial.”